PNOC-EC completes bid for Sibugay coal block

MANILA, Philippines — The application of Philippine National Oil Co. - Exploration Corp. (PNOC-EC) for a nominated area in Malangas, Zamboanga Sibugay under the Philippine Conventional Energy Contracting Program (PCECP) for coal, has passed the initial completeness check of the technical and financial documentation requirements.

On Friday, the Department of Energy (DOE), through its Energy Resource Development Bureau (ERDB), opened PNOC-EC’s bid for the two coal blocks in Malangas, Zamboanga Sibugay.

The Review and Evaluation Committee (REC) Technical Working Group composed of the DOE-ERDB, Legal Services and Financial Services, will conduct further substantive evaluations of the application within 11 working days before endorsing the findings to the vice-chair and chair of the REC.

According to the DOE, the opening activity of the two coal blocks,  42-I-1 and 42-I-2, is a milestone in the upstream coal development sector as this is the first application under the PCECP pursuant to DOE circular 2017-09-0010 where interested companies can nominate areas for exploration of the country’s coal resources.

“Despite the COVID-19 pandemic, the DOE is committed to tap potential energy exploration so the country could further attain its energy security and sustainability,”Energy Secretary Alfonso Cusi said.

“We are pursuing to harness all our indigenous energy resources as we continue to usher in economic progress amidst adversities,”he said.

The DOE has committed to expedite all its power and energy projects, including those being handled by the PCECP, to help the recovery of the economy from the impact of the COVID-19 pandemic.

The PCECP was launched by the DOE to help the Philippines attain energy independence as it facilitates the exploration and development of indigenous energy resources, and revitalize the upstream oil and gas sector.

Last month, the DOE opened the bid submissions for nominated areas under the PCECP for petroleum.

Among the companies that submitted bids include MVP-led PXP Energy Corp. for nominated area 6, which is located in the Recto Bank Basin of the West Philippine Sea and Dennis Uy-led Udenna Energy Corp. for nominated areas 7 and 8, which are also located in the Recto Bank.